Global Cannabis Stock Index Retreats Before Bouncing Big – New Cannabis Ventures

Cannabis stocks, as measured by the Global Cannabis Stock Index,  exploded higher in late August on news that the Department of Health and Human Services had recommended to the DEA that it move cannabis from Schedule 1 to Schedule 3, and the move continued into September. October wiped out the entire rally, and November and December saw the market recover some of the losses. In January, the rally continued, but it stalled in February and then exploded higher in March. It was down big during this month until an explosive rally on the last day. In April, the index rose 14.6% sequentially to 11.71:

In 2023, Q1 saw a 12.5% decline, and the index dropped 11.8% in Q2. The 22.3% gain in Q3 was the first positive quarter since Q1 of 2021, and Q4 saw it lose 11.6%. Q1 of 2024 saw strength, with the index soaring 26.0%. The index ended 2023 down 16.5% to 8.11, and it is up 44.4% so far in 2024:

Since the peak in February 2021, the Global Cannabis Stock Index has dropped 87.3% from the 92.48 closing high:

The strongest 3 names in April all rose by more than 42%:

The Canadian LPs were very strong in March, and Aurora Cannabis, a new entrant in April, led the way this month. It is up 93.8% in 2024, behind Canopy Growth, which has soared 191.2%. Kaival Brands, also a recent addition, is up 4.5%.

The 3 weakest names in April all fell by more than 1.3%:

Ispire has plunged 57.4% so far in 2024. Lexaria was also added to the index this month. It is up 147.2% in 2024. Scott Miracle-Gro, which reports its fiscal Q2 tomorrow, has rallied 7.5% so far this year.

New Cannabis Ventures maintains four proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index. The American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. More recently, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email